Your Registered Retirement Savings Plan (RRSP) play a key role in ensuring your financial security in retirement.   Your life insurance plays a key role in providing financial security to your dependants upon your death.

But many people forget that naming beneficiaries - and keeping the selection up to date - is almost as important as starting the plan or policy in the first place.

Your RRSP. At death, all your RRSP money will be taxed as income at your marginal rate on your final tax return.  That could wipe out a lot of your hard earned savings.  But you can defer the tax by designating your spouse (or a qualifying spousal trust) as beneficiary.  The tax deferral can also be maintained by naming a financially dependent child or grandchild as beneficiary, who can use the money to buy an annuity that runs until he or she turns 18.

Life insurance.  It's common for married couples to name each other as beneficiaries in their policies.  But there could be problems if you both die together, or if your spouse dies before you.  In this case, it's useful to prevent legal complications by naming your children as so-called "contingent" beneficiaries.

When to review.  A periodic review of your beneficiary designations - preferabley one a year - ensures that your assets are properly distributed.  Also conduct a review anytime there is a significant change in your personal circumstances.